European Union signs aviation agreement with
Malaysia

Yesterday, the EU signed an aviation agreement with
Malaysia, which removes nationality restrictions in the bilateral air services
agreements and thereby allows European airlines to operate flights between any
EU Member State and Malaysia. The agreement was signed in Brussels by Commission
Vice-President Jacques Barrot in charge of transport, Germany's Federal Minister
of Transport, Building and Urban Affairs, Wolfgang Tiefensee, and the Malaysian
Minister of Transport Y. B. Datuk Seri Chan Kong Choy. The agreement
demonstrates that there is an external dimension to the single European market
for air transport.

Upon signature of the agreement, Vice-President Barrot declared: "I
welcome this further step in developing Europe's air transport links with Asia.
EU airlines now have non-discriminatory access to the air transport market
between the EU and Malaysia. In South-East Asia, similar agreements have already
been reached with Singapore and Vietnam and more are under preparation".

The “horizontal” aviation agreement signed yesterday does not
replace the bilateral agreements in place between the EU Member States and
Malaysia but brings these in line with EU law. The horizontal agreement thus
restores legal certainty by removing the nationality restrictions contained in
bilateral air services
agreements[1]. Malaysia has
bilateral air services agreements with 21 EU Member States all of which have
been brought on a sound legal basis by the horizontal agreement signed
yesterday.

Horizontal agreements have now been negotiated with 25 countries worldwide
and more will follow in the coming months. 70 countries around the world have
accepted the principle of EU
designation[2] either through
horizontal agreements or bilaterally with individual EU Member States. In total,
this has allowed nearly 500 bilateral air services agreements to be brought into
conformity with Community law.

[1] Such nationality
restrictions have been found incompatible with EU law by the European Court of
Justice in the “open skies” judgements of 5 November 2002.

[2] The principle of EU
designation implies any EU carrier is eligible to fly from any EU Member States
to non-EU countries provided traffic rights are available under the bilateral
agreements with these countries.